At the end of its first year, the trial balance of Oriole Company shows Equipment $34,700 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $3,660. Prepare the annual adjusting entry for depreciation at December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Post the adjustments to T-accounts. Depreciation Expense V: Accumulated Depreciation Equipment 1.1 Indicate the balance sheet presentation of the equipment at December 31. Debit Oriole Company Balance Sheet (Partial) $ Credit $
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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Carla Vista Financial Planners
Adjusted Trial Balance December 31, 2020 |
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Debit
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Credit
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Cash
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$4,704
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2,208
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Supplies
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1,728
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Equipment
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13,440
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$2,880
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Accounts Payable
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3,168
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Unearned Service Revenue
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5,760
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Owner’s Capital
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14,016
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Owner’s Drawings
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2,400
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Service Revenue
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4,320
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Supplies Expense
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672
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Depreciation Expense
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2,592
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Rent Expense
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2,400
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$30,144
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$30,144
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(a)
- Your Answer
- Correct Answer (Used)
1. An income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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Carla Vista Financial Planners
Income Statement choose the accounting period |
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select an opening name for section one
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enter an income statement item
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$enter a dollar amount
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select an opening name for section two
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enter an income statement item
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$enter a dollar amount
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enter an income statement item
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enter a dollar amount
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enter an income statement item
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enter a dollar amount
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select a closing name for section two
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enter a total amount for section two
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select a closing name for this statement
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$enter a total net income or loss amount
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(b)
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Carla Vista Financial Planners
Owner’s Equity Statement choose the accounting period |
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select an opening name
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$enter a dollar amount
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select between addition and deduction :
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select an item
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$enter a dollar amount
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select an item
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enter a dollar amount
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enter a subtotal of the two previous amounts
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select a closing name
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$enter a total amount
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eTextbook and Media
List of Accounts
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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